Targets reached in Cable, AUD/USD and Silver; now long USD/JPY
The 2 big drivers in the FX market over the last few weeks have been the semi-official Japanese buyers of AUD bonds driving AUD/JPY higher, and the reserve managers buying of EUR/USD after the EU bail out announcements.
My targets have been reached in Cable @1.32 and AUD/USD @ .72 and I now feel that there is significant potential for a sharp up-move in USD/JPY. Pretty much all of the JPY crosses look to be putting in interim bases and once the August lull is over, I would not be at all surprised to see USD/JPY trading back above 110.
I’m still of the opinion that cable and Aussie will see higher levels but I prefer to wait for dips and reinstate longs near 1.26 and .68 respectively. But lets wait and see what the market does before committing to definite levels.
For now, I’m core long USD/JPY whilst above 104 and will continue to trade with a bullish intraday bias, buying dips and looking for 50-80 pip session profits.